In its National Pool price review, AWB (International) Limited today announced an increase of $5.50 a tonne (GST inclusive) for all new crop durum estimates. All other pool estimates, for both old and new crop, remain unchanged.
AWB (International) Limited General Manager Peter Geary said strong international prices for durum and indications of a high quality Australian durum crop had lead to the increase.
"Feedback from international millers suggests that Australian new crop durum is of a very high quality, and we are confident that we can extract a premium from the market for this wheat,” Mr Geary said.
“International prices for quality durum have also remained strong because of a lack of high quality durum in North America.”
The strengthening of the Euro against the US dollar should also increase demand for premium durum in Europe.
“The Europeans consume a large percentage of the world’s durum supplies and as the Euro strengthens against the US dollar, millers are able to purchase more high quality durum,” Mr Geary said.
He said all other estimates remain unchanged.
“While there was upward movement in US wheat futures prices during last week, it was primarily driven by commodity fund buying. The market is watching wheat’s fundamentals very closely, particularly the development of the US new crop, to see whether the recent price appreciation is sustainable longer term,” said Mr Geary.
Golden Rewards matrices reflecting current pool returns are available from AWB’s new poll fax service on 1902 910 020, the Grower Service Centre on 1800 054 433 or from AWB’s website at www.awb.com.au
>AWB (International) Limited will be reverting to a fortnightly pool update. The next update will be released on Monday 22th January 2001.
For more information please contact Jo O’Connell at AWB Limited Public Affairs, (03) 9209 2555 or 0407 310 250.